Figures published
in 1994 for the UK & Ireland estimated that piracy of
business applications cost software developers nearly $240
million at that time around 40% of their revenue. For the larger
software companies software piracy deprives them of earnings
which mean higher prices for end users. For the smaller software
companies it deprives their creative teams of their due
compensation for what may be thousands of hours spent working on
a particular product.
Software Piracy falls under differing
categories, such as :
Counterfeit
- This is the duplicating and selling
unauthorised copies of software in such a manner
as to try to pass off the copy as if were a
legitimate copy, produced or authorised by the
publisher.
Multiple
Usage- The Purchasing of a
single licensed copy of the software and loading
it onto several machines, contrary to the terms
of the licence agreement. This includes
"sharing" software with friends and
co-workers.
Hard-Disk
Loading- When retailers sell
computers pre-loaded with illegal software.
Always ensure that when you receive your new
machine that you receive a Microsoft Certificate
of Authenticity for the operating system.
OEM
Unbundling- This can occur
either at the Original Equipment Manufacturer
(OEM) level and/or at the retailer. Unbundling
involves the separating of OEM software from the
hardware that it is licensed to be sold with. The
product is clearly marked "For Distribution
with New PC Hardware Only". It should not be
installed on any other machines.
Bulletin
Board Piracy- Putting software
on a bulletin board service for anyone to copy,
or copying software from a bulletin board
service. This refers to products other than
Freeware or Shareware. The same can be said for
Warez websites.
Software
Rental- Renting software for
temporary use and failing to delete at the end of
the agreement always assuming that the licence
allowed the software to be rented.
Dual Media- some suppliers supply both 3.5" discs
and CDs in the same package but there is still
just one licence. It is illegal to pass the
"spare" media to a friend or colleague.
Software
Piracy and the Law
There are several
laws governing software copyright the most widely used is the
CDPA (The Copyright, Designs and Patents Act 1988 section 50A).
Software is covered under the category of Literary Works for both
source and human code. This act was amended in 1992 by the
Copyright (Computer Programs) Regulations. Normally the duration
of copyright protection is from creation until 50 years after the
authors death. For computer generated works copyright runs
for 50 years from the end of the calendar year in which it was
created. The EC directive for Literary Works (July 1995) gives
copyrightprotection for the lifetime of the author plus
70 years.Other laws include Trade Marks Act 1994, Trade
Descriptions Act 1968, Theft Act 1968, Computer Misuse Act 1990
and the Forgery and Counterfeiting Act 1981
The person who
illegally copied the software is liable and if it was discovered
in a company then the Employer is liable for the acts of the
employees who during the course of employment installed pirated
software.
Enforcing of
Software Copyright is carried out by various national and
international organisations which actively enforce copyright in
addition some software publishers pursue software pirates in
their own right. There are also efforts from many different
groups including Police, H M Customs, BSA, FAST, SPA, Trading
Standards Officers, Copyright Owners and collection agencies.
The
Consequences
Unauthorised
duplication of software is an offence which can subject you to:
A civil suit for unlimited
damages, injunctions and legal fees
criminal liability which
can include ...
fines up to maximum
(currently about 6,500) and/or imprisonment of
up to six months on summary conviction
on conviction on
indictment imprisonment for up to 2 years, fine with
no maximum limit (within ability to pay)
Software
Licences
All software comes
with a licence which specifically states the terms and conditions
under which the software may be legally used. Licences vary from
product to product and may authorise one computer or user to use
the software or several thousand network users to share the
application through the system. It is important to read and
understand the licence accompanying the program to ensure that
you have sufficient legal copies and are adhering to all terms of
the licence. Remember that when you purchase a software package
you are in fact only acquiring a licence to use it, the publisher
retains full rights and has sole rights to distribution and
reproduction, therefore you don't actually own the software.